Stocks that are making large moves like these are favorites among short-term traders because they can jump into these names and try to capture some of that massive volatility. Stocks that are making big-percentage moves either up or down are usually in play because their sector is becoming attractive or they have a major fundamental catalyst such as a recent earnings release. Sometimes stocks making big moves have been hit with an analyst upgrade or an analyst downgrade.
Regardless of the reason behind it, when a stock makes a large-percentage move, it is often just the start of a new major trend -- a trend that can lead to huge profits. If you time your trade correctly, combining technical indicators with fundamental trends, discipline and sound money management, you will be well on your way to investment success.
With that in mind, let's take a closer look at a several stocks under $10 that are making large moves to the upside.
Organovo (ONVO), a development-stage company, focuses on developing and commercializing functional human tissues that could be employed in drug discovery and development, in biological research and as therapeutic implants for the treatment of damaged or degenerating tissues and organs. This stock closed up 1.9% to $8 in Tuesday's trading session.
Tuesday's Range: $7.85-$8.14
52-Week Range: $4.96-$13.65
Tuesday's Volume: 843,000
Three-Month Average Volume: 1.39 million
From a technical perspective, ONVO jumped notably higher here right above its 50-day moving average of $7.68 with lighter-than-average volume. This uptick higher is starting to push shares of ONVO within range of triggering a near-term breakout trade. That trade will hit if ONVO manages to clear Tuesday's intraday high of $8.14 to $8.35 and then once it takes out its 200-day moving average of $8.40 with high volume.
Traders should now look for long-biased trades in ONVO as long as it’s trending above its 50-day at $7.68 or above more near-term support at $7.65 and then once it sustains a move or close above those breakout levels with volume that hits near or above 1.39 million shares. If that breakout triggers soon, then ONVO will set up to re-test or possibly take out its next major overhead resistance levels at $8.84 to $9.25. Any high-volume move above $9.25 to $9.30 will then give ONVO a chance to tag $10 to $10.50.